Bitcoin (BTC) is trading sideways in the $78,000 range, with investors turning cautious ahead of U.S. inflation data and the Federal Reserve's interest rate decision.
BTC traded at $78,102.04 as of 8:04 a.m. on the 10th, down 0.52% from the previous day, according to global cryptocurrency tracker CoinMarketCap. Ethereum (ETH) fell 1.23% to $2,456.97, BNB dropped 4.49% to $720.08, and XRP declined 2.24% to $1.386 at the same time.
The domestic market also fell. BTC stood at 106.319 million won on Bithumb at the same time, down 0.46% from the previous day. ETH fell 1.15% to 3.344 million won, and XRP dropped 1.92% to 1,892 won.
Analysts said U.S. rate expectations, rather than crypto-specific factors, are driving BTC prices. U.S. Treasury yields have stayed elevated as geopolitical tensions in the Middle East pushed up both oil and gold prices. Brent crude topped $100 a barrel, while gold rose above $4,400 an ounce.
The 10-year U.S. Treasury yield is near 4.8%, while the two-year yield, which is more sensitive to monetary policy, is above 4.4%. Markets are pricing in roughly a 60% chance that the Fed will raise its benchmark rate this month, according to CME FedWatch.
Jasper De Maere, an over-the-counter trader at Wintermute, said the market is currently moving on interest rates rather than crypto-specific factors, and that volatility could widen later this week as the last macroeconomic indicators are released ahead of the Fed's rate decision.
Market participants see short-term support for BTC at $75,000 and resistance at $82,000, according to cryptocurrency news outlet CoinDesk. With selling pressure persisting near $80,000, U.S. inflation data is seen as the variable that will determine whether the range holds. The U.S. producer price index (PPI) is due late in the day, with the consumer price index (CPI) scheduled for the 11th. The two readings are the last major inflation indicators before the Federal Open Market Committee (FOMC) meets on the 15th and 16th.
The Fear and Greed Index compiled by crypto data provider Alternative.me stood at 66, down three points from the previous day, indicating a state of "greed." A reading closer to zero signals weakened investor sentiment, while a reading closer to 100 indicates an overheated market.
